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Nifty

Nifty opened with an upward gap but witnessed selling from the opening tick to end on a negative note. Nifty closed at 18083 with a loss of 63 points.

On the daily chart the index has formed a Bearish candle with a lower shadow indicating buying at lower levels. Going forward 18000 will act as a crucial support level from the upward sloping trendline. If it holds above 18000 level the rally is expected continue and if it close below it than profit booking cannot be ruled out. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a sustained up trend. The chart pattern suggests that if Nifty crosses and sustains above 18200 level it would witness buying which would lead the index towards 18300-18400 levels. Important support for the day is around 18000 However if index sustains below 18000 then it may witness profit booking which would take the index towards 17900-17800 levels.. Nifty is trading above 20, 50, 100 and 200 day SMA indicating positive bias in the short to medium term. Nifty continues to remain in an uptrend for the short term, so buying on dips continues to be our preferred strategy.

The daily strength indicator RSI continue to remain flat and is above its reference line indicating absence of momentum on either side

The trend deciding level for the day is 18105. If NIFTY trades above this level then we may witness a further rally up to 18160-18235-18290 levels. However, if NIFTY trades below 18105 levels then we may see some profit booking initiating in the market, which may correct up to 18030-17975-17900 levels

Banknifty

Banknifty opened with an upward gap but witnessed selling from the opening tick to close on a negative note. Banknifty closed at 41147 with a loss of 143 points.

On the daily chart, the index has formed a bearish candle forming lower High-Low compared to previous session and has also closed below previous session's low indicating further weakness. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating a short term up trend. The chart pattern suggests that if Banknifty crosses and sustains above 41000 level it would witness buying which would lead the index towards 40800-40600 levels. Important support for the day is around 41300 However if index sustains below 41300 then it may witness profit booking which would take the index towards 41500-41700 levels.. Banknifty is sustaining above its 20, 50, 100 and 200- day SMA which signals bullish sentiments in near term. Banknifty continues to remain in an uptrend in the medium and long term, so buying on dips continues to be our preferred strategy.

The daily strength indicator RSI continues to remain flat and is above its reference line indicating absence of momentum on either side

The trend deciding level for the day is 41225. If BANK NIFTY trades above this level then we may witness a further rally up to 41395-41640-41810 levels. However, if BANK NIFTY trades below 41225 levels then we may see some profit booking initiating in the market, which may correct up to 40980-40815-40565 levels

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